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TIBCO Q2 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 1:12 AM ET June 30 2009

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TIBCO second quarter net revenue declined 4.8% to $142.7 million while net income surged 188% to $10.1 million due to lower operating expenses. Earnings per share were 6 cents per share as against 2 cents a year ago.


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Operator

And next we’ll go to Yun Kim with Broadpoint AmTech.

Yun Kim - Broadpoint AmTech

Thank you. Again congratulations on a good execution. What was the final sales headcount at the end of the quarter and what is your plan regarding your sales force size for the rest of the year?

Sydney Carey

We ended the quarter at 169 quota carrying heads which was slightly down from last quarter. We are still making targeted investment in the sales force and hiring back in positions. We still would like to see ending the year somewhere between the high 170’s, 180 headcount.

Yun Kim - Broadpoint AmTech

Great and then were there any $5 million plus deals in the quarter and what was the revenue contribution from the top 10 deals?

Sydney Carey

There were not any deals above $5 million in the period and the revenue contribution from the top 10 was right about 20%.

Yun Kim - Broadpoint AmTech

Okay great, and do you see, so that 20% seems to be quite low versus the historical averages. Is that something that you guys are expecting going forward? Go forward with that number of large deals kind of contributing less of the overall revenue or do you expect that to kind of spike back up to more like high 20’s, low 30% range?

Murray Rode

Normally we run kind of a little bit over 20, it’s kind of 22%, 23% has been the trend for the last few quarters. So I don’t think we saw that as being too far off the past performance and I think we’ve been pretty consistent in that range so I’m not sure we’re expecting it to change dramatically.

Vivek Ranadive

Just a couple of comments, we have been striving to expand the capacity of what we call our machine and historically if you look at our numbers, we’ve always been at the high end of productivity when you look at the average, what the average sales guy does. And I think most people will acknowledge that we’ve been good at doing that and what our goal has been is to expand that machine and I do want to say that we’ve actually, we’re pleased with what we are seeing on that front.

So the new people we’ve hired are productive sooner than we expected even in this challenging environment and we’re pleased that we’re actually driving deals at the lower end as well.

Yun Kim - Broadpoint AmTech

Okay great and then finally if you guys can just talk about how much of the large system integrators are playing a role in your business especially as you roll out some of the new initiatives such as cloud computing, obviously the appliance quarterback, if you can just comment on some of the partnership ecosystem around some of the new initiatives that you have.

Vivek Ranadive
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